Why has tax debt increased?

VCN – There are many reasons that lead to an increase in the tax debt of 2021 over the same period in 2020.
by the end of December 31, 2021, the whole tax sector recovered VND25,100 billion
By the end of December 31, 2021, the whole tax sector recovered VND25,100 billion

Tax debt increase

According to the report of General Department of Taxation, by the end of December 31, 2021, the whole tax sector recovered VND25,100 billion, reaching 83.4% of the assigned target.

In particular, collecting debt by debt management measures reached VND17,705 billion; collection by debt enforcement measures VND7,395 billion.

Along with that, the tax sector has also focused on handling tax debts that are no longer able to be paid to the state budget following Resolution No. 94/2019/QH14.

Accordingly, by the end of 2021, the total number of taxpayers who have been processed for debt relief and debt cancellation of late payment interest is 860,448 with the total amount of tax and late payment interest at VND32,941 billion, equal to 117.8% of the assigned task.

Accordingly, handling debt relief for 651,733 taxpayers with a total amount of tax debt is VND27,671 billion (equivalent to 157.8% of the assigned task); handling debt cancellation of late payment debt for 208,715 taxpayers with a total amount of late payment and cancellation of VND5,270 billion, equaling 51.3% of the assigned task.

Most tax departments are submitting to the People's Committees of provinces, the General Department of Taxation and the Ministry of Finance to issue a decision of debt cancellation or are in the process of disclosing information and reviewing debt cancellation records.

Thus, by the end of December 31, 2021, the total tax debt of the tax sector is VND104,042 billion, an increase of 9.3% compared to December 31, 2020. The ratio of total tax debt over total revenue of 2021 is at 10.1%. The total tax debt by the end of 2021 is VND 91,742 billion, the ratio of total tax debt to total revenue in 2021 is at VND91,742 billion. 8.9% excluding the amount of tax arrears that are being handled and the tax debts under complaints and lawsuits.

According to the analysis of the General Department of Taxation, compared with the end of 2020, 36 out of 63 localities have reduced the total amount of tax debt; 27 out of 63 localities have a total increase in tax debt compared to the end of 2019. In particular, 17 out of 21 localities have a high debt growth rate of 10% or more.

Compared with the tax debt target assigned in 2021, 30 out of 63 localities met the target; 33 out of 63 localities did not meet the target, of which 25 out of 33 localities were 10% or more than the assigned target.

The Covid-19 pandemic caused an impact on tax debt

In 2021, the Covid-19 pandemic led to the application of social distancing in many localities under Directive 15/CT-TTg and Directive 16/CT-TTg of the Prime Minister. It caused many difficulties for enterprises in production and business, with many enterprises suffering from losses and insolvency.

Along with that, a number of taxpayers in industries that are eligible for tax payment extension have not submitted a request yet in accordance with Decree 52/2021/ND-CP of the Government, so they are still subject to debt monitoring. Hence, it leads to an increase in total tax debt.

According to the General Department of Taxation, the debts of land use fees, land rents and fees for granting mineral exploitation rights of some projects have not been paid into the state budget.

The problem is that projects have not been put into operation, waiting for localities to carry out ground clearance, settlement of compensation or waiting for approval of the plan to adjust the use purpose or the exploitation area. However, according to the law, the tax authority calculates the debt under the notice of payment of land use levy, land rent, and mineral mining rights.

In addition, there are still a number of taxes and land rents that have expired the tax payment extension following the Government's Decrees and Decisions in order to remove difficulties for people and businesses. Although the tax authority has implemented measures to urge debt collection, taxpayers are still facing difficulties in cash flow, thus tax has not yet been paid into the state budget.

The General Department of Taxation also pointed out that there was a situation where some taxpayers make declarations on arising payable tax amounts who were not directly affected by the Covid-19 pandemic, but they take advantage of the pandemic to delay paying tax.

In 2022, the General Department of Taxation will review, calculate and assign tax collection targets to each tax department. Tax departments will assign debt collection targets to each tax branch, affiliated unit and tax official. Besides that, carrying out monthly and quarterly check and monitoring the implementation progress to ensure that the target of debt collection is completed by the end of the year. At the same time, reviewing and classifying tax debts, analyzing the causes of each debt subject to have solutions to urge collection.

The Tax Department will also continue to closely coordinate with Party committees, local authorities, and relevant ministries such as Police, the State Bank, the investment planning agency, and market surveillance authority in tax debt recovery, especially in handling the recovery of tax arrears related to land and mineral mining rights.

The tax sector aims to implement digitization in the issuance of debt notices, debt assignment and classification, reducting tax debt groups accurately and settlement of tax liabilities appropriate to the nature of each debt, improving the effectiveness and efficiency of debt management and tax debt enforcement.

In particular, the Tax authority will closely coordinate with the State Treasury to collect tax arrears and deduct value-added tax as prescribed by law when the State accelerates payment of public investment capital according to the Prime Minister’s Directive.

Also, focusing on reviewing projects that have expired tax incentives, newly arisen projects, arrears according to the recommendations of the Auditing and Inspectorate agencies in order to collect the correct amounts of taxes, fees, charges, revenues from land, natural resources, minerals and other revenues into the state budget.

By Thùy Linh/Thanh Thuy

Related News

Lang Son Customs faces difficulties in tax debt recovery

Lang Son Customs faces difficulties in tax debt recovery

VCN - Recently, Lang Son Customs Department has implemented many tax debt enforcement measures to reduce tax debt to the lowest level. However, the results have not met expectations. Customs branches at border gates in the province are currently facing difficulty in collecting tax debt.
Revenue from casino contributes about VND9,000 billion to the State budget

Revenue from casino contributes about VND9,000 billion to the State budget

VCN - The management of lottery and casino business activities is one of contents asked by National Assembly delegates to Minister of Finance at the question and answer session took place on the morning of March 18, within the framework of the 31st session of the National Assembly Standing Committee.
Plan of bidding VND400,000 billion of government bonds with term 2024

Plan of bidding VND400,000 billion of government bonds with term 2024

VCN - The State Treasury has just announced details plan of the 2024 government bond bidding by term.
Seeking overdue tax debts of enforced businesses – Part 1: Some enforced exit suspension to find out that they are directors

Seeking overdue tax debts of enforced businesses – Part 1: Some enforced exit suspension to find out that they are directors

VCN – In addition compliant businesses, contributing large tax revenue to the State budget and bolstering economic development, there are still some businesses taking advantage of the openness of the law to establish illegitimate companies to delay billions of dong in tax debt for many years, in order to avoid tax obligations to the State. To collect these tax debts, the Law on Tax Administration No. 38/2019/QH14 stipulates eight measures to enforce administrative decisions on tax management. One of those effective measures is exit suspension for legal representatives of businesses, which has helped the Customs agency earn hundreds of billions of dong in import-export tax and domestic taxes.

Latest News

Efficiency from inspection and supervision - a key factor for a transparent stock market

Efficiency from inspection and supervision - a key factor for a transparent stock market

VCN - Since the 2019 Securities Law officially took effect, the average annual number of penalty decisions has more than doubled compared to the period 2015-2020. This shows that the strictness of the law is being enforced effectively.
SBV approves designation of 14 important banks in 2024

SBV approves designation of 14 important banks in 2024

The State Bank of Vietnam (SBV) has issued Decision No. 538/QD-NHNN approving the group of credit institutions and foreign bank branches which play an important role in the country's banking system in 2024.
Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially during the peak month of tax settlement.

More News

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

VCN - To complete the task from now until the end of 2024 and successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - With advantages such as being cheaper than domestic capital, and accompanied by many factors such as technology, skills, management, market... foreign capital is a popular trend among businesses. Domestic enterprises seek through M&A activities to ensure sustainable development for the future.
Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

VCN - Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

VCN - The Ministry of Finance aims to continue to strongly improve the business environment, create a healthy competitive environment, rapidly increase the number of newly established businesses, and reduce the rate of businesses temporarily suspending operations; reduce input costs and legal compliance costs in investment and business activities, reduce policy risks, strengthen trust, create a fulcrum for recovery and improve business resilience.
Vietnam tackles obstacles to stock market upgrade

Vietnam tackles obstacles to stock market upgrade

Vietnam's ambition to elevate its stock market from "frontier" to "emerging" status by 2025 faces two key hurdles, including pre-trade margin requirements for foreign investors and foreign ownership ratios in certain sectors, said Deputy Director of the Securities Market Development Department under the State Securities Commission (SSC) Pham Thi Thuy Linh.
Looking forward clear instructions in tax finalization in 2023

Looking forward clear instructions in tax finalization in 2023

VCN - Mr. Hoang Quang Phong (photo), Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) discussed supporting taxpayers in tax finalization in 2023.
Proactive in dealing with exchange rate pressure

Proactive in dealing with exchange rate pressure

VCN - Recently, the State of Bank (SBV) withdrew VND 30,000 billion through the T-bills channel, contributing to reducing exchange rate pressure. This is just one of the moves of the monetary policy management agency to stabilize the foreign exchange market, contributing to supporting the macro economy as well as import-export business activities of enterprises.
Tax sector accompanies and supports tax finalization

Tax sector accompanies and supports tax finalization

VCN - In the first months of 2024, the Tax sector has deployed peak months to support tax finalization in many different forms, thereby solving many problems in settlement of corporate income tax and personal income tax for taxpayers.
Minister of Finance: Fairness and transparency for the insurance market

Minister of Finance: Fairness and transparency for the insurance market

VCN - According to Minister of Finance Ho Duc Phoc, the Ministry has strengthened inspections to correct violations in the insurance sector, demonstrating fairness and transparency in the market.
Read More

Your care

Latest Most read
Efficiency from inspection and supervision - a key factor for a transparent stock market

Efficiency from inspection and supervision - a key factor for a transparent stock market

VCN - Since the 2019 Securities Law officially took effect, the average annual number of penalty decisions has more than doubled compared to the period 2015-2020. This shows that the strictness of the law is being enforced effectively.
SBV approves designation of 14 important banks in 2024

SBV approves designation of 14 important banks in 2024

The State Bank of Vietnam (SBV) has issued Decision No. 538/QD-NHNN approving the group of credit institutions and foreign bank branches which play an important role in the country's banking system in 2024.
Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially dur
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

To successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Mobile Version